Artificial intelligence will likely be one of the biggest stories of the decade. Grand View Research stated the global AI boom could grow from about $137 billion in 2022 to $1.81 trillion by 2030. Even analysts at Markets and Markets just said the AI market could reach $1.345 trillion by 2030 from $150.2 billion today. That’s creating a big opportunity for these top AI stocks to buy listed below.
According to McKinsey & Co., 70% of companies will have integrated AI into their businesses by 2030, adding about $13 trillion to the global economy. In short, we’re looking at a massive, game-changing opportunity.
President Joe Biden recently stated, “We’ll see more technological change in the next 10 years than we’ve seen in the last 50 years and maybe beyond that.” He said, “AI is already driving that change.”
With that, here are three of the top AI stocks to buy and hold right now.
AI Stocks to Buy: SoundHound AI (SOUN)
I’ve mentioned SoundHound AI (NASDAQ:SOUN) several times as a top AI pick. In fact, the last time I mentioned SOUN was June 12, when it was trading at $3 a share. Now at $3.52, there’s still plenty of upside potential remaining. For one, the company is working with the auto industry, integrating voice assistants into vehicles. Secondly, the company is already seeing “an incredible surge in demand for conversational AI.” And three, analysts like the stock, with Cantor Fitzgerald raising its price target on SOUN to $6.20 from $2.80. Also helping, the SOUN stock was added to the Russell 2000 and the Russell 3000 Indexes toward the end of June.
Even better, the business is jumping into restaurants, too. Earlier this year, SOUN partnered with Oracle (NYSE:ORCL) to integrate its Smart Ordering voice AI solution with Oracle’s MICROS Simphony Point-of-Sale (POS) — a cloud-based kitchen management system that allows restaurants to accept orders online and through mobile devices. “Restaurants are looking to voice technology to help drive sales, support employees, and create a great customer experience,” SoundHound’s chief product officer and cofounder James Hom stated.
Nerdy (NRDY)
The last time I mentioned the live-learning platform Nerdy (NYSE:NRDY) on February 18, it traded at around $2.80 a share. Today, it’s up to $4.06. And while it’s technically stretched — and in need of a healthy pullback — the stock could see higher highs over the long haul.
Remember, its Chief Executive Officer (CEO) Chuck Cohn was -– and is — so bullish, he’s bought over $30 million worth of stock since May 2022. In addition, he told the St. Louis Post-Dispatch, “I think the shares are deeply undervalued, and I purchased them as a result of my conviction about the company’s new business model.” That’s an AI stock I want to invest in on — one in which its management team is all-in on the company’s growth prospects.
Earnings have been impressive, too. For example, revenue was up nearly 5% year over year to $49.2 million during Q1 2023. While the company expects Q2 revenue to fall in a range of $45 million to $47 million, it did raise its full-year 2023 revenue target to a range of $193 million to $200 million, which is a 21% growth at the midpoint range.
ROBO Global Artificial Intelligence ETF (THNQ)
If you want to diversify at less cost, consider an AI ETF like the ROBO Global Artificial Intelligence ETF (NYSEARCA:THNQ). With an expense ratio of 0.95%, the ETF invests in companies developing the technology and infrastructure, enabling the AI revolution.
That includes computing, data, and cloud services, and businesses applying AI to e-commerce, business processes and healthcare. Some of the fund’s top holdings include Amazon (NASDAQ:AMZN), Alphabet(NASDAQ:GOOG, NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA) and more than 55 other AI-related holdings. Since the start of the year, the THNQ ETF ran from $26.30 to $35.15. I want to see it at $45.
On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
